When buying a home, unexpected costs can be a true concern. While there are undoubtedly some expenses that come up with new homeownership that are not necessarily planned for, the more you can minimize these surprises, the better. Buying a lakefront home is no exception. If you have plans to purchase this sort of property, learn about some of the additional costs you should include within your savings and budget goals.
Pay careful attention to the condition of the boat dock on the property before you purchase. Living on a lake without access to a boat dock can be anything but exciting and adventurous. After all, without a dock, you cannot secure your boat or have a space to enjoy time outside on the water.
For this reason, if the dock is in an unstable condition, or if you are unable to negotiate repairs with the seller, you will need to plan for these repair costs out of pocket. Keep in mind, for a large dock in bad shape, this can equal thousands of dollars in cost. Alternatively, you can look for lakefront homes with docks in good condition that may only need minimal maintenance or repair.
Land Lease Agreements
Living on a lake generally does not mean that you own the water. Most often the homeowner owns everything up to the shore, but from that point on, the local county or other municipality owns the lakefront. As a result, lakefront homeowners are typically required to pay a monthly or annual lease payment to these agencies.
How large your private shore access is and how exclusive the area is can largely determine how much you have to pay. To be prepared, understand that some of these lease agreements may span decades. As such, it can be an expense you will need to maintain for some time.
If you are in the market to purchase a home, you may already understand that you need to have homeowner's insurance to protect your property. However, what you pay for a lakefront home is quite different from what you can expect to pay at a home that is more inland. In fact, this cost can increase significantly if the body of water is also susceptible to flooding. As a helpful tip, it is a good idea to work with your real estate agent to begin searching for insurance early. Agents that sell lakefront homes typically have plenty of connections and experience which can help you find the best rate for this feature.
Always partner with an agent to ensure you know what expenses to expect so that you can plan properly. They can provide further information regarding lakefront single-family homes.